The ONLY reason price goes up or down in any market is caused by “Supply and Demand”. If there are a lot of homes on the market and few buyers, then price comes down, or if there are a lot of buyers in the market and few sellers, then price goes up. Most people have seen this first hand in the last 10 years. Although “Supply and Demand” is the only reason price goes up or down, it is only fair to mention that there are many factors that contribute to both Supply and Demand increasing or decreasing: Low interest rates, income growth, job growth, etc. to mention a few.
A couple weeks ago I read this article from the National Association of Realtors and according to this article, “Total housing inventory at the end of March rose 4.7 percent to 1.99 million existing homes available for sale, which represents a 5.2-month supply at the current sales pace, up from 5.0 months in February. Unsold inventory is 3.1 percent above a year ago, when there was a 4.7-month supply.” What this suggests is that we have roughly a 5 month supply of homes on the market.
Here in the Greater Las Vegas Metropolitan Area, we had 3263 sales in the month of April, and as of the time of this writing on May 12, 2014 we have 9830 available properties for sale, this includes condominiums, townhomes, single family homes, high rise condos, and manufactured homes. What this survey concludes is that we have a 3 month supply of homes on the market, far less than the national average of supply.
Just looking at this survey suggests that price should continue to move up. However, I just found this recent survey on Lending Tree that was written in back in January, and the reason for me writing my very first blog. According to this study they say that 71% of homeowners are considering selling in 2014.
What all this suggests to me is that a seller putting their home on the market now makes a lot of sense, they’ll avoid future competition, and with our still limited inventory (3 months,) sellers will be in a great position to get the best possible price for their home.
And if you’re looking to gain more appreciation by waiting for a higher price, beware of trying to catch the falling knife.
A couple weeks ago I read this article from the National Association of Realtors and according to this article, “Total housing inventory at the end of March rose 4.7 percent to 1.99 million existing homes available for sale, which represents a 5.2-month supply at the current sales pace, up from 5.0 months in February. Unsold inventory is 3.1 percent above a year ago, when there was a 4.7-month supply.” What this suggests is that we have roughly a 5 month supply of homes on the market.
Here in the Greater Las Vegas Metropolitan Area, we had 3263 sales in the month of April, and as of the time of this writing on May 12, 2014 we have 9830 available properties for sale, this includes condominiums, townhomes, single family homes, high rise condos, and manufactured homes. What this survey concludes is that we have a 3 month supply of homes on the market, far less than the national average of supply.
Just looking at this survey suggests that price should continue to move up. However, I just found this recent survey on Lending Tree that was written in back in January, and the reason for me writing my very first blog. According to this study they say that 71% of homeowners are considering selling in 2014.
What all this suggests to me is that a seller putting their home on the market now makes a lot of sense, they’ll avoid future competition, and with our still limited inventory (3 months,) sellers will be in a great position to get the best possible price for their home.
And if you’re looking to gain more appreciation by waiting for a higher price, beware of trying to catch the falling knife.
No comments:
Post a Comment
Comments are moderated to eliminate spam